IFC to invest US $500 million in India by June

World Bank's private equity arm, International Finance Corporation, aims to cross 500-million-dollar mark in new investments by June 07. IFC's currently-held portfolio is 1.3 billion dollar (as of June 2006) making India its fourth-largest country of operations.

During the last year, IFC invested over Rs 91.71 crore in a subsidiary of Moser Baer and infused about Rs 82 crore for assisting Kanoria Chemicals in its expansion plan. It has also picked up 11.48 percent stake in Granules India for around Rs 26 crore and has committed a 50-million- dollar loan to Orissa-based cement manufacturer OCL India Ltd. IFC would also invest over Rs 101.37 crore (25 million dollars) to help expansion of the production capacity of electronic bikes marker Electrotherm India in Gujarat.

IFC focuses on supporting companies that do not have easy access to long term funding. In the past, IFC had invested in companies such as Bharat Forge and Titan Watches, which later grew into global brands, in their early stages. The list also includes industrial giants like Tata Steel, Larsen and Toubro, Bajaj Scooters and Arvind Mills. In the financial sector, IFC played an institution- building role and was a founding investor in key financial institutions such as HDFC and IDFC and continues to be their partner.

As of financial year 2006, IFC has the largest exposure in the manufacturing sector, followed by financial sector. Pulp and paper, steel products and chemicals formed a large part of the manufacturing portfolio of the institution.

Source: Hindustan Times
Related Stories: IFC, DEG planning to acquire a stake in SICOM

The Tata Group restructures shareholding pattern in North Indian Plantation Operations

The shareholding pattern of Amalgamated Plantations Private Limited (APPL), the new company formed by Tata Tea after restructuring its North Indian Plantation Operations (NIPO), is close to finalization. The Tata Group will hold 33-35% in APPL through Tata Investment Corporation (15%) and Tata Tea (18-20%). IL&FS and the World Bank private equity firm IFC will hold 20% stakes each in APPL, while consultancy firm Globally Managed Services will hold 12%. The balance 13-15% will be held by employees and workers of the company.

The company has received SEBI approval for the formation of APPL. Once we get shareholders’ approval, the company will come into existence with effect from April 1, 2007. The transaction process, however, remains to be completed.

Read more in The Economic Times article.
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Tata Tea to divest stake in tea plantations to IFC, IL&FS, workers

IFC, DEG planning to acquire a stake in SICOM

The private equity arm of the World Bank, the International Finance Corporation (IFC), and Germany-based DEG, one of the largest European development finance institutions, are eyeing a stake in the State Industrial Corporation of Maharashtra (SICOM), the investment arm of Maharashtra government. Standard Chartered Private Equity (SCPE), Lehman Brothers, Temasek and a couple of hedge funds may also be interested in picking up stake in SICOM.

Existing shareholder in SICOM, the Specified Undertaking of Unit Trust of India (SU-UTI) is planning to fully divest its 36.5% in SICOM. Both IFC and DEG have approached the investment banker appointed by SU-UTI for the divestment. UTI AMC holds another 3.5% in the corporation.

SICOM offers advisory services to the government of Maharashtra, Maharashtra Electricity Regulatory Commission as well as other corporates. It also gives investment facilitation services to MNCs as well as Indian companies who wish to setup their manufacturing units in Maharashtra. The company is launching a second venture fund and would be soon offering merchant banking, treasury management of state PSUs, real estate development through subsidiary or joint ventures.

Read the article in Business Standard.